Due to the massive hack Uber suffered in October 2016, the company is now faced with a number of investigations from several state attorneys general and international regulators from Europe. The breach, which was covered by the ride-share company, resulted in the theft of over 50 million users’ personal information. Regulators are mostly focused on how the cyber attack was handled by Uber.
The company’s new CEO Dara Khosrowshahi admitted Uber was wrong to keep the hack secret. Legal experts believe the company will be criticized for breaking the law by not notifying of the hack in states which have breach notification laws and where customer data was compromised.
Investigations into the cyberattack have already been opened by attorneys general in at least three states. According to Steve Rubin, head of cybersecurity legal practice at a Long Island law firm, the incident may lead to the Federal Trade Commission investigating Uber.
“This wasn’t simply a data breach. They went further and they tried to pay off a hacker in order to avoid their obligation to report to attorneys generals,” Rubin said, adding that companies are usually penalized for that.
A spokesperson for the FTC said it was “closely evaluating the serious issues raised,” although the agency hasn’t made clear whether it will investigate the incident.
Representative Frank Pallone, a ranking member of the House Commerce Committee, called for an investigation because, as he said, the hack “demonstrates a severe breach of trust with the public, its own employees, and regulators who it failed to notify in a timely manner.”
Uber first became the subject of controversy when it faced allegations of sexual harassment, later on, investigated by Attorney General Eric Holder, as well as when former CEO Travis Kalanick was caught on tape having a heated exchange with a driver, The Hill reports.
Be the first to comment